Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the...
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Accounting
Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Myrtle Sales $560, 200 Variable costs 176, 300 Contribution Margin 383,900 Fixed Costs (allocated) 284,575 Profit Margin $ 99, 325 Laurel Total $336,300 $896,500 174, 200 350, 500 162, 100 546,000 170, 925 455,500 $ (8,825) $ 90,500 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice O $99,325 profit o $383,900 profit $71,600 loss $90,500 profit
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